Jump Trading Revives U.S. crypto operations after 2 years of pullback

Jump Trading Scales Up U.S. Crypto Operations After A Two-year Pause Amid Regulatory Scrutiny And A Lawsuit Over Alleged Token Dumping.

Key Takeaways: – After reducing operations due to regulatory uncertainties, Jump Trading is increasing U.S. crypto trading volume and recruiting new talent. – The firm is currently under investigation by the SEC and CFTC, and it is also facing a lawsuit from Fracture Labs concerning alleged token dumping.

Jump Trading, a major market maker in the cryptocurrency industry, is revitalizing its U.S. digital asset operations after a period of contraction caused by regulatory uncertainties.

The company, which had reduced its activities following the collapses of Terra Luna and FTX, is now ramping up its trading volume in the U.S. and expanding its workforce.

Although Jump Trading has scaled back its operations in the U.S., it has maintained its digital asset trading and market-making activities globally. With a more advantageous regulatory environment emerging, the company plans to recruit more crypto engineers and aims to fill positions related to U.S. policy and government liaison, as reported by CoinDesk.

Jump Trading emerged as a key subject of regulatory examination following the collapses of Terra Luna and FTX. It has been reported that the firm reduced its presence in the U.S. by spinning off its Wormhole project and cutting the workforce of Jump Crypto by 50%. At its peak in 2022, this division had about 150 employees.

The Chicago-based trading firm is also dealing with legal challenges. In October 2024, Fracture Labs filed a lawsuit against Jump Trading, claiming that the company’s actions resulted in a significant drop in the value of DIO tokens. The lawsuit alleges that Jump, which was contracted as a market maker for DIO tokens on the HTX exchange, sold off the tokens, leading to a decline of more than 99% in their value.

Moreover, Jump has been associated with allegations of market manipulation. In 2023, the U.S. Securities and Exchange Commission (SEC) investigated the firm, focusing on its role in subsidizing LUNA-UST during the initial depegging event, which allegedly resulted in profits exceeding $1.28 billion.

At the same time, the Commodity Futures Trading Commission (CFTC) has been scrutinizing Jump Crypto’s activities, particularly its support of 120,000 ETH for Wormhole after a $325 million hack, as well as its possible involvement in the collapse of FTX in 2022.

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